Definition of Small Business
A small business is any business that has less than 500 employees. Also, it is not a dominant player in that specific industry on a national basis. There are various areas of businesses that attract small businesses but the most notable ones are the retail, hotel, advertisement, and agricultural sectors. These areas have been known to attract a lot of businesses because of the little capital that is needed. Also, there are small and manageable legal requirements.
Preventing Failure of a Small Business
Most people do not take any steps to protect their businesses from failure because of various reasons. In this case, they do not have first-hand experience of the risks that can be found in that business. Other people assume that everything will just be okay due to their high expectations and anticipation. Therefore, various steps can be taken to avoid business failure. For instance, owners should come up with proper plans to enhance their businesses. Also, they should ensure that the business is in a good location that will attract customers. Bad management and lack of public awareness should be dealt with for sustainability.
Restaurant Business as an Example of a Small Business
A Business Plan for a Restaurant
If I could start a small business, I would start a restaurant business. In this case, it would be in my best interest to develop a business plan. A business plan will enable me to plan for my business without any problem. My business plan will have components like the business concept, financial features, financial requirements, current business position, and major achievements.
Management Functions of a Restaurant Owner
As a manager of a local restaurant, I will be involving all the employees to plan for the business. The business plan can be reviewed occasionally for sustainability. I will come up with an organizational framework that will enhance the restaurant’s operations. As far as leadership and motivation are concerned, I will allow employees to participate in running the business by enabling them to use their talents. To control the organization, I will set out roles and responsibilities that everybody is supposed to adhere to.
Small Business Administration
Assistance to Entrepreneurs
SBA can broadly assist small businesses. For instance, it gives out loans and grants to small businesses. An example of these loans and grants is small business loans, grants, bonds, and other financial assistance.
Benefits for Average Citizens
Average citizens broadly benefit from SBA and this is not another way to spend our tax money. Citizens who want to start small businesses can be assisted to stabilize their startups. Average citizens can benefit from the jobs that will be created by these businesses. It should be known that SBA creates an entrepreneurial spirit in the country and this is good for society.
The Benefits of a Franchised Business
I would love to become a franchise because it is an easy way to get a foothold in the business. If I were to operate a franchise, I would choose a restaurant business because it appears lucrative to me and easy to establish. As a franchisee, I will benefit from getting an established brand and a stable customer base of the franchise among other benefits. The franchisor will also benefit by expanding his business rapidly and without any problem. From a broad perspective, the franchisor will be able to expand his brand awareness.
Skills for Effective Management
Personal Skills
To become an effective manager of a sporting goods store like Dicks, I need delegation as a critical skill. Another specific skill is problem-solving and decision making because of a large number of employees. Internal communication and planning will be critical for success as an effective manager. To become a successful manager of the store, I am supposed to be hardworking and industrious. Am also supposed to be an attentive listener for sustainability.
Leadership and Motivation Skills
It is important and necessary to have leadership and motivation to enhance the survival of the organization. Leadership and motivation will help in coming up with good decisions that will enable the organization to move forward. These skills are necessary for effective management in a specific area that needs direction. From a broad perspective, leadership and motivation are needed to position the business in the market.